Profits at Bill Kenwright Productions, one of the UK's biggest commercial theatre producers, shrunk by two-thirds last year and the company has given warning of a further slump after a "difficult" summer in which its longest-running show, Blood Brothers, closed after 24 years.

According to the Liverpool Daily Post, the group's pre-tax profits fell from £2m in 2010 to £668,000 the following year, on turnover down 13% to £30.9m.

Accounts filed with Companies House also show that Kenwright did not pay himself a dividend last year on top of his £404,000 salary. He had received an additional £3m in the previous year.

However, a company spokesperson said the situation was unlikely to have improved in 2012, during which the company faced competition from the Olympic and Paralympic games and the Jubilee celebrations.

"We predicted that this summer would be difficult and indeed, by all accounts, it has been, with the poor West End ticket sales and the emotional decision to take off Blood Brothers at the Phoenix where it was about to go into its 25th year," the spokesperson said.

Bill Kenwright Productions has two West End shows in the offing that could restore some balance. Cabaret, starring popstar Will Young and former EastEnders actor Michelle Ryan, has moved into the Savoy theatre, while at the end of the month Tommy Steele will lead Scrooge at the London Palladium.

The company's situation is detailed in a statement contained in its latest accounts: "Despite worsening economic conditions the group's core business of producing quality theatrical plays and musicals continues to yield reliable returns."